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Abnormal returns

Definition:

The component of the return that is not due to systematic influences (market-wide influences). In other words, the abnormal returns is the difference between the actual return and that is expected to result from market movements (normal return). Related: excess returns.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Matched and lost

The outcome of the flip of a coin used to determine which of two brokers who are locked in competition for equal trades may actually execute the trades.

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